Verizon Communications (the Northeast's dominant local telephone company) announced yesterday that the money it lost from the destruction last Tuesday would be recovered via insurance and Federal aid. Although Verizon declined to estimate the cost of getting the pieces of its network destroyed in attacks last Tuesday back in order, it is thought it will take less than a billion dollars to rebuild the system. Verizon strongly emphasized that this would not affect rates charged to its customers because it would be getting so much from insurance and the government. Verizon expects it will have the bulk of its customers back online in the next 24 to 36 hours.

Jack Grubman, an analyst at Salomon Smith Barney, said that Verizon's balance sheet would not be affected. In addition, the company will have upgraded some of its technology as a result of the events.

RON'S OPINION
Although this is sad, there is an unexpected silver lining in the huge black cloud looming over this whole nation. We must look at the positives that can come out of this mess, and although it is small, the upgrade of Verizon's telecom technology because it has to restore service due to disaster beyond belief may be the first positive we can take hold of. I am not saying that destruction is good; it is not! But President Bush has been granted 20 billion dollars by Congress to try to clean up the mess, find the dead and living under the rubble, and rebuild as much as possible. Furthermore, it granted him another 20 billion as a down payment on any military action to be taken, and yes, it did approve military action. That money can go towards making Americans feel safe and normal again (to some degree), and that is good.

Last week's events have changed the city of New York forever. People have banded together like never before to help one another, as evidenced by the monster blood donor lines not only in New york, but all across the nation. As far as I know, Kansas City still tops the list of cities giving money, to the tune of 1.5 million dollars to help the Red Cross help New Yorkers.

Verizon will rebuild, and it will be stronger because of this disaster. In fact, history tells us that with each war waged this country has grown stronger as a result. To Verizon, this is just a drop in the bucket; about 1% of its annual revenue, according to Jack Grubman. My hat is tipped to the men and women restoring service on the Verizon network. May they work correctly and speedily.

USER COMMENTS 1 comment(s)

That's a hellofaway to upgrade equipment!(2:57pm EST Tue Sep 18 2001)“In addition, the company will have upgraded some of its technology as a result of the events.”

I hope this doesn't encourage nut-jobs out in the boonies to bomb their local TELCO's so they'll get off their collective lazy asses and upgrade their equipment!